Posts tagged FedEx
The Delivery Business Shows Why Unions Are Struggling to Expand
May 29, 2024 // But the union has also suffered losses. Yellow, a trucking company that employed 24,000 Teamsters, shut down and filed for bankruptcy protection last year. Amazon and FedEx said they were confident in their approach to managing and compensating workers. Amazon said it had made investments that bolstered pay and benefits at its delivery contractors. FedEx said its nonunion model allowed it to quickly increase pay whereas UPS’s union employees were bound by the terms of five-year contracts.
FedEx Express Pilots hit the picket line outside Memphis headquarters as company reports higher third-quarter earnings
March 25, 2024 // “Management continues to insist that any new agreement must be cost-neutral with respect to the rejected tentative agreement,” said Wilm. “This approach will not be accepted by FedEx pilots and will not lead to an agreement that will be ratified by our pilots.” ALPA said the pilots will picket more frequently if FedEx leaders keep using ‘delaying’ tactics.
New IC rule will have ‘unintended consequences’
January 23, 2024 // For Jim Burg, owner of Warren, Michigan-based James Burg Trucking Company, being an independent operator helped him build his business, and he views being an owner-operator as a potential stepping stone for others wanting to do the same. Burg started his company in 1984 with one truck as an independent contractor. His company is now a 94-truck operation with a terminal in Michigan City, Indiana. His trucks primarily haul steel for the automotive and manufacturing industries. "I drove over 1.2 million miles during the early years of my company's existence. Being an IC gave me the experience to understand the trucking industry and how to run a business, Burg recalled, "and it allowed me to gain knowledge of both as I set out to establish my own company."
UPS cuts 2023 forecasts, fights to regain business lost during US labor talks
August 10, 2023 // United Parcel Service (UPS.N) cut its full-year revenue and profitability targets on Tuesday as the world's largest package deliverer faces higher labor costs and fights to win back U.S. business lost during tumultuous contract talks with the Teamsters. UPS reached a tentative five-year deal for some 340,000 U.S. employees represented by the International Brotherhood of Teamsters union shortly before the July 31 expiration of their contract. In the run-up to the deal, as the union threatened to strike, customers diverted more shipments than expected to rivals, UPS CEO Carol Tome said on a conference call with analysts.
UPS shippers may face double-digit rate increases in wake of contract
July 27, 2023 // UPS Inc. shippers should brace themselves for double-digit general rate increases (GRI) in 2024 as the transport and logistics behemoth looks to recoup the “astronomical” cost increases from its tentative five-year contract with the Teamsters union, a transport executive said. Tom Nightingale, CEO of AFS Logistics Inc., a non-asset-based provider that negotiates, audits and pays about $4 billion in annual parcel spend, told FreightWaves that the “real” GRI, which is generally what shippers pay based on their shipment profiles and after add-on accessorial and fuel surcharges, will probably be in the 11% and 12% range. The headline GRI, which often doesn’t reflect what shippers actually pay, will likely be in the high single digits, which would be a second consecutive record. It should be announced by Thanksgiving. Last year’s record UPS GRI of 6.9% (NYSE: UPS) turned into an actual GRI of close to 9% after all factors were incorporated into the calculations. Nightingale, whose company keeps close tabs on this data, said his customers were “gobsmacked” when they were told late last year what they would actually be paying in 2023. FedEx Corp., (NYSE: FDX) UPS’ chief rival, had already hit the market with the same record increase. The GRIs, though technically increases on tariff rates, often dictate what shippers will pay in their contracts unless they can negotiate them down.
Michigan businesses urged to prepare for UPS strike by Teamsters
July 21, 2023 // So just how big is UPS to cause such concerns? It transports about 6 percent of the nation’s gross domestic product. When it comes to total revenue from the nation’s domestic shipping, the U.S. Postal Service had the largest share at 32 percent in 2022 followed by UPS at 24 percent, Amazon Logistics at 23 percent, and FedEx with 19 percent, per the Pitney Bowes Parcel Shipping Index. UPS averaged 24.3 million parcels a day last year and 6.2 billion for 2022, which generated a company record $100.3 billion in revenue,
Despite President Joe Biden’s repeated boasts, union membership continues to fall
July 18, 2023 // Union members do not always agree with Democrats on policy matters. Biden's own green energy agenda is coming up against labor resistance, with organized auto workers prepared to strike over the hazards and lack of benefits in electric vehicle production. Biden must also work to keep blue-collar union members from slipping into the Republican column as candidates like former President Donald Trump play up American manufacturing and the virtues of import tariffs. But more recent headlines showcase unions fighting their traditional battles over pay, benefits, and worker protections.
UPS, Teamsters accuse each other of walking away from contract talks
July 6, 2023 // The Teamsters Union said on Wednesday United Parcel Service "walked away" from negotiations over a new contract, a claim the shipping giant denied, lobbing its own accusation that the union had stopped negotiating. The two sides traded salvos in early morning statements as they attempt an agreement to prevent a strike when the current contract, which covers some 340,000 workers, expires at the end of the month.
Terms regarding FedEx pilot strike detailed in tentative agreement between union and company
June 15, 2023 // Specifically, a 30 percent pay increase, a 30 percent increase to the pilots' legacy pension and a fully developed and "equally valuable company-funded" market based cash balance pension to provide a "durable" replacement for their legacy pension are part of the terms. ALPA said that to date, this is the largest investment in a pilot contract on a per capita bases and it "substantially raises the bar" when it comes to pilot retirement. “After careful consideration and thorough debate, our union leaders recognized the value this agreement will bring to our pilots and their families,” said MEC chair captain Chris Norman. “Now, we shift our focus to ensuring our pilots have the time and resources needed to make an informed decision.”
FedEx pilots union reaches tentative contract deal
May 31, 2023 // Pilots’ unions reportedly have more leverage to push for increased pay and changes in scheduling practices, following the shortage of pilots industry-wide that came about as carriers encouraged retirement during the COVID-19 pandemic.